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New fund to share riches with charity

Drew Cratchley

A group of experienced market experts setting up a new investment fund will share their success with children's charities.

Future Generation Investment Fund plans to donate one per cent of its assets each year - likely to equate to at least $1 million - to a range of charities helping disadvantaged kids.

Management and performance fees will be foregone to boost the fund's asset base, while its board will also waive fees normally paid to directors.

"Although Australia is ranked as the seventh wealthiest nation in the world on a GDP per capita basis, a staggering 17 per cent of our children fall below the poverty line," said Geoff Wilson, Future Generation's chairman.

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Mr Wilson, a 34-year veteran of share market trading, has driven the establishment of the fund, which plans to list on the market in September.

He will be joined on the board by other investment market and financial services experts, each with decades of experience.

The fund currently has no operating or investment activities, and its net assets will be determined by the demand for its market listing, and a buy-back of shares from its existing shareholders.

Future Generation aims to raise up to $200 million with its initial public offer of new shares, which is set to close in early September before shares begin trading on September 14.

Shareholders will also benefit from the fund's lack of performance and director fees, with any extra funds from those policies set to go to its investors.

By making the fund attractive to investors, Future Generation stands to raise more for its selected charities, Mr Wilson said.

Among the charities set to receive donations are Kids Helpline, Youth Off The Streets and Lighthouse Foundation.